Morgan Stanley Reiterates Overweight, $47 PT on LyondellBasell

Morgan Stanley maintains its Overweight rating on LyondellBasell Industries NV

and raises target price to $47 from $45 as low risk, high return CapEx drives greater upside potential. Morgan Stanley says, “A number of low-risk, high return projects could add an incremental $1B to EBITDA by 2015. …We are increasing our Base Case 2013E EBITDA by 7% from $5,239 to $5,585 to account for a number of various growth projects. We are also marking to market our polypropylene margin assumptions in 2012 from $(0.01)/lb to $(0.03)/lb as demand has weakened. This lowers our 2012E EBITDA by 4%.” LYB closed at $33.72 per share on Thursday.